What Is Non-Owner Car Insurance? (+ How Much Does It Cost?)

You might need car insurance even if you don't own a car. That is, if you drive.

If you often rent or borrow cars, you may not have adequate (or any) auto insurance and need coverage to protect you while you drive. Why? Because if you cause an accident, you're legally liable for the damages and could be on the hook for a lot of money if you're not on the car owner's policy.

Non-owner car insurance provides financial protection for covered drivers who use the car, just as a standard auto insurance policy provides coverage for the policyholder or primary driver. We highly suggest looking into non-owner insurance if you frequently rent or borrow vehicles. Here's what you need to know about this type of policy and where to find one.

What is non-owner car insurance?

A non-owner car insurance policy is a form of liability insurance for licensed drivers who don't own a car. This coverage is also known as no-vehicle insurance or non-owned car insurance.

No-vehicle policies provide liability insurance coverage for property damages or injuries you may cause to another driver in an accident, shielding you from financial liability.

In addition to covering bodily injury and property damage, non-owner policies can provide liability protection against underinsured or uninsured motorists, cover medical expenses, and offer personal injury protection.

Tip

No-vehicle auto policies only provide coverage for the insured driver, not other drivers in the same household, like a spouse or teenage driver.

What does non-owner car insurance cover?

A standard non-owner car insurance policy provides:

Personal injury liability protection: This helps pay for the medical costs associated with an injury the other driver sustains in a car accident you cause.
Property damage liability protection: This protection helps cover the cost of damages to another vehicle or property in an accident that is your fault.

Tip

A non-owner policy differs from rental car insurance, which you often purchase when renting a car from an agency such as Enterprise or Hertz. This type of policy is temporary and only extends to the rented vehicle. Rental cars are already insured, so you don't technically need insurance to drive one, but you're responsible for any damages to a vehicle you rent.

Additional coverage for non-vehicle policies

Some no-vehicle car insurance policies may offer additional coverage in addition to liability protection:

Medical payments: This helps pay for medical bills for you and your passengers in the event of an accident, regardless of who was at fault.
Underinsured or uninsured motorist coverage: This helps pay for medical bills or other damages if you are in an accident caused by someone who doesn't have insurance or has inadequate insurance coverage.
Personal injury protection: Also called no-fault insurance, PIP offers medical payment coverage for you and your passengers, and it also covers lost wages due to the accident, regardless of who was at fault.

Coverage not offered by a non-owner car insurance policy

Non-owner auto insurance doesn't provide comprehensive or collision insurance. These are typically offered together as full coverage and don't pertain to you if you don't own a vehicle.

Comprehensive insurance covers non-collision damages like theft, vandalism, or weather-related damages. Collision insurance helps with the costs of damages following a crash, whether that's a single-car crash like hitting a telephone pole or a collision with another car. The car owner must file a claim with their insurance policy if there is damage to their vehicle.

How much is non-owner car insurance?

No-vehicle car insurance is often cheaper than a standard car insurance policy, but this is because it tends to offer less coverage.

The cost of non-owner car insurance is between $153 and $545 per year, or $325 a year on average, according to data collected by Insurance.com. The actual price you pay depends on the state you live in and your insurance company. Several factors affect car insurance rates, which include your:

Age
Gender
Marital status
Education
Occupation
Driving record
Credit score
Driving history
Number of miles you drive annually

Shop around to get the best deal. Getting quotes from insurance companies is free, and there's no obligation to accept an offer. This allows you to compare cost and coverage to make the best choice.

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Who should get non-owner car insurance?

If you regularly drive someone else's car and/or don't have your own vehicle, we might recommend non-owner insurance for you. Here are a few types of drivers this type of policy is best for:

People who frequently borrow cars from friends.
People who often drive rented cars and don't purchase rental car insurance.
People who use car-sharing services.

You also might consider getting a non-owner policy if:

You're required to file an SR-22 but don't own a car: If you've had enough moving violations, such as DUIs and driving uninsured, that your driver's license has been suspended, you may have to carry an SR-22 insurance form showing you have the minimum liability coverage required by your state. Your insurer can provide a non-owner policy that satisfies the requirements for proof of insurance even when you don't own a car.

Where to find the best non-owner insurance

Several major car insurance companies offer non-owner insurance, including Progressive, GEICO, Nationwide, and State Farm.

To find the best rates on non-owner policies, compare quotes from multiple companies. This type of coverage isn't always well advertised, so you might need to call a representative from a provider you're interested in rather than using a comparison site or online quote tool.

Note that this coverage may not be available in all states.

FAQs

What companies offer non-owner car insurance?

Several major insurance companies offer non-owner insurance, including Progressive, GEICO, Nationwide, and State Farm. However, this coverage may not be available in all states, so check with your insurance agent.

Can you insure a car you don't own?

You can't purchase insurance to cover a car you don't own. However, a non-owner car insurance policy covers your liability when you drive a car that isn't yours without covering the vehicle itself.

For example, suppose you borrow your friend's car and get into an at-fault accident. Your non-owner car insurance can be a secondary coverage to the auto insurance your friend already has for the vehicle. Once the liability limits on your friend's insurance policy are exhausted, your non-owner car insurance kicks in and covers the remaining liability costs.

However, your non-owner auto coverage doesn't help with the repair or replacement costs for the vehicle you were driving.

Does non-owner car insurance cover rental cars?

Yes, no-vehicle car insurance provides liability coverage if you get into an at-fault accident driving a rental car. Sometimes having non-owner car insurance is less expensive than getting liability coverage through a rental company. However, a liability policy doesn't cover the vehicle you're driving, only any personal injury or property damage sustained by the other driver.

Bottom line

I highly suggest considering non-owner car insurance if you often rent or borrow cars. The liability protection you'll receive covers you financially should you cause an accident.

Even if you don't use other people's cars often, a no-vehicle car insurance policy can provide continuous coverage when you don't have a car but will in the near future to avoid excessive insurance premiums later on.

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